Currencies Cut 1st-Qtr Earnings By $7.4 Billion, FIREapps SaysJohn Detrixhe
Changes in foreign-exchange prices reduced U.S. and European corporate earnings by about a combined $7.4 billion in the first quarter, according to FIREapps, a Scottsdale, Arizona-based company.
U.S. companies’ profits were cut by $3.3 billion by swings in currencies, affecting some 186 companies, FIREapps said today in a report. European corporations were impacted by $4.2 billion, reducing earnings at 113 firms. FIREapps advises clients and makes software to help reduce the impact of changes in foreign-exchange prices. The report included 846 North American companies and 354 European firms, the company said.
Earnings per share at U.S. companies were reduced by 5 cents on average in the first three months of the year, compared with 3 cents in the four previous quarters, FIREapps said. European corporations didn’t quantify the impact of foreign currencies, it said.
The dollar fell 0.2 percent versus the euro in the first quarter and 2 percent against the yen, after declining 1.6 percent against the shared European currency and rallying 6.7 percent against the yen in the fourth quarter of 2013.